Fair Isaac Corporation Reports 15% Revenue Growth to $440M in Latest Quarter

Fair Isaac Corporation (FICO) reported a strong financial performance for the quarter ended December 31, 2024, with total revenues reaching $440.0 million, a 15% increase compared to $382.1 million in the same quarter of the previous year. The company's net income also saw a significant rise, amounting to $152.5 million, up 26% from $121.1 million year-over-year. This resulted in diluted earnings per share of $6.14, reflecting a 28% increase from $4.80 in the prior year. Operating income for the quarter was $179.5 million, a 19% increase from $151.4 million in the previous year.

The Scores segment was a key driver of growth, generating $235.7 million in revenue, which represents a 23% increase from $192.1 million in the prior year. This growth was primarily attributed to higher business-to-business scores revenue, driven by increased unit prices and volume in mortgage originations. The Software segment also contributed positively, with revenues of $204.3 million, an 8% increase from $189.9 million, largely due to a rise in on-premises and SaaS software revenue.

FICO's operational metrics showed promising trends, with Annual Recurring Revenue (ARR) for the Software segment increasing by 6% to $729.3 million as of December 31, 2024. The company reported a Dollar-Based Net Retention Rate of 105%, indicating strong customer retention and expansion. The total employee headcount rose to 3,604, up from 3,485 a year earlier, reflecting the company's growth and investment in talent.

In terms of strategic developments, FICO continued its stock repurchase program, spending $159.7 million on share buybacks during the quarter, compared to $71.7 million in the same period last year. The company also maintained a total debt balance of $2.4 billion, an increase from $2.2 billion as of September 30, 2024. FICO's cash and cash equivalents stood at $184.3 million at the end of the quarter, up from $150.7 million at the end of the previous quarter, providing a solid liquidity position.

Looking ahead, FICO expressed confidence in its ability to meet future capital requirements through its cash reserves and available borrowings from its $600 million revolving line of credit. The company anticipates that its financial position will support ongoing growth initiatives and strategic investments in technology and acquisitions. Overall, FICO's performance in the latest quarter underscores its strong market position and operational resilience in a competitive landscape.